Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version

The case describes how a 120-year-old, domestic bank in Peru, focusing on A, B and C socio-economic segments and corporate banking, as well as boasting the country's largest channel customer service network and leading the industry in the number of monetary transactions, spotted a business opportunity in a segment that strays from its core business -the low-income sector (D). To seize it, the bank developed in 2005 Agente BCP, a new channel to cater to this segment with banking agents. After launching Agente BCP, it recorded unexpected growth rates, and did the largest number of transactions as compared to other BCP channels, taking the brand name to remote locations, and receiving numerous awards. However, some executives still wondered whether this channel should continue to be part of the bank's operations or whether the time had come to spin it off. Universidad del PacA?fico' case collection

Authors :: Giuliana Leguia, Michelle Rodriguez Serra, Elsa Del Castillo

Topics :: Strategy & Execution

Tags :: Emerging markets, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version" written by Giuliana Leguia, Michelle Rodriguez Serra, Elsa Del Castillo includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bcp Agente facing as an external strategic factors. Some of the topics covered in Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version case study are - Strategic Management Strategies, Emerging markets and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, there is increasing trade war between United States & China, geopolitical disruptions, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, increasing transportation and logistics costs, etc

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Introduction to SWOT Analysis of Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bcp Agente, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bcp Agente operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version case study
2. Improving business portfolio management of Bcp Agente
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bcp Agente

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Strengths Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Bcp Agente in Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version Harvard Business Review case study are -

Highly skilled collaborators

– Bcp Agente has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Diverse revenue streams

– Bcp Agente is present in almost all the verticals within the industry. This has provided firm in Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

High switching costs

– The high switching costs that Bcp Agente has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Ability to lead change in Strategy & Execution field

– Bcp Agente is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Bcp Agente in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Effective Research and Development (R&D)

– Bcp Agente has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Superior customer experience

– The customer experience strategy of Bcp Agente in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Training and development

– Bcp Agente has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Sustainable margins compare to other players in Strategy & Execution industry

– Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version firm has clearly differentiated products in the market place. This has enabled Bcp Agente to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Bcp Agente to invest into research and development (R&D) and innovation.

Organizational Resilience of Bcp Agente

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bcp Agente does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Bcp Agente digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bcp Agente has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

High brand equity

– Bcp Agente has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bcp Agente to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Cross disciplinary teams

– Horizontal connected teams at the Bcp Agente are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

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Weaknesses Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version are -

Lack of clear differentiation of Bcp Agente products

– To increase the profitability and margins on the products, Bcp Agente needs to provide more differentiated products than what it is currently offering in the marketplace.

High bargaining power of channel partners

– Because of the regulatory requirements, Giuliana Leguia, Michelle Rodriguez Serra, Elsa Del Castillo suggests that, Bcp Agente is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

High cash cycle compare to competitors

Bcp Agente has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High operating costs

– Compare to the competitors, firm in the HBR case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bcp Agente 's lucrative customers.

Slow decision making process

– As mentioned earlier in the report, Bcp Agente has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Bcp Agente even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Aligning sales with marketing

– It come across in the case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version can leverage the sales team experience to cultivate customer relationships as Bcp Agente is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version HBR case study mentions - Bcp Agente takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version, in the dynamic environment Bcp Agente has struggled to respond to the nimble upstart competition. Bcp Agente has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version, it seems that the employees of Bcp Agente don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version, is just above the industry average. Bcp Agente needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Capital Spending Reduction

– Even during the low interest decade, Bcp Agente has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

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Opportunities Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities highlighted in the Harvard Business Review case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version are -

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Bcp Agente can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Bcp Agente can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Bcp Agente can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Bcp Agente in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.

Loyalty marketing

– Bcp Agente has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Buying journey improvements

– Bcp Agente can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Bcp Agente to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Better consumer reach

– The expansion of the 5G network will help Bcp Agente to increase its market reach. Bcp Agente will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Creating value in data economy

– The success of analytics program of Bcp Agente has opened avenues for new revenue streams for the organization in the industry. This can help Bcp Agente to build a more holistic ecosystem as suggested in the Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version case study. Bcp Agente can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bcp Agente can use these opportunities to build new business models that can help the communities that Bcp Agente operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Building a culture of innovation

– managers at Bcp Agente can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Bcp Agente can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Developing new processes and practices

– Bcp Agente can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Bcp Agente can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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Threats Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version are -

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Bcp Agente.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Bcp Agente in the Strategy & Execution sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Bcp Agente high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Stagnating economy with rate increase

– Bcp Agente can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

Consumer confidence and its impact on Bcp Agente demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Bcp Agente needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version, Bcp Agente may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .

Increasing wage structure of Bcp Agente

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Bcp Agente.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Bcp Agente in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Bcp Agente business can come under increasing regulations regarding data privacy, data security, etc.

Regulatory challenges

– Bcp Agente needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bcp Agente with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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Weighted SWOT Analysis of Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Banco de Credito del Peru: Agente BCP - Strategy Channeling or Channel Segmentation?, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Bcp Agente needs to make to build a sustainable competitive advantage.

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